Your Client Has Returned to You the Representation Letter That

question 17

Essay

Your client has returned to you the representation letter that they sent to their lawyer.The letter contains the following statement from the client's lawyer:
"the directors seem to underestimate the likelihood of losing the case, and the potential financial settlement amount.We believe that there is little chance of successfully defending the matter, and expect that there will be amounts payable in the vicinity of $3 million, not $1 million.We do however remind you that the matter is only in preliminary stages and could still go either way".
Has the auditor collected this evidence in the appropriate way? What should the auditor do in regards to the information provided by the lawyer?

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Definitions:

Intravenously (IV)

The method of administering fluids or medication directly into a vein through a syringe or IV line.

Identification

The process of recognizing or establishing the identity of a person or thing.

Medication Error

Any preventable event that may cause or lead to inappropriate medication use or harm to a patient while the medication is in the control of the healthcare professional, patient, or consumer.

Inhaler Refill

The process of obtaining more medication for an inhaler device, commonly used by individuals with respiratory conditions like asthma.